BUSINESS AND SEGMENT REPORTING

6 Months Ended

Jun. 30, 2020

BUSINESS AND SEGMENT REPORTING [Abstract]

BUSINESS AND SEGMENT REPORTING

Note 4 — Business and Segment Reporting:

The Company has two reportable segments: Crude Tankers and Product Carriers. The Company’s investments in and equity in income of the joint ventures with two floating storage and offloading service vessels are included in the Crude Tankers Segment. The Company’s investments in and equity in income of the joint venture with four LNG Carriers, which was sold in October 2019, was included in Other. Adjusted income/(loss) from vessel operations for segment purposes is defined as income/(loss) from vessel operations before general and administrative expenses, provision for credit losses, third-party debt modification fees, and gain/(loss) on disposal of vessels and other property. The accounting policies followed by the reportable segments are the same as those followed in the preparation of the Company’s condensed consolidated financial statements.

Information about the Company’s reportable segments as of and for the three and six months ended June 30, 2020 and 2019 follows:

	Crude		Product
(Dollars in thousands)	Tankers		Carriers		Other		Totals
Three months ended June 30, 2020:
Shipping revenues	$	110,407	$	29,318	$	—	$	139,725
Time charter equivalent revenues		105,890		29,399		—		135,289
Depreciation and amortization		14,732		4,125		23		18,880
Loss on disposal of vessels and other property, including impairments		4,134		—		—		4,134
Adjusted income/(loss) from vessel operations		62,883		15,731		(23)		78,591
Equity in income of affiliated companies		5,205		—		—		5,205
Investments in and advances to affiliated companies at June 30, 2020		146,861		8,330		—		155,191
Adjusted total assets at June 30, 2020		1,288,235		321,530		—		1,609,765
Three months ended June 30, 2019:
Shipping revenues	$	52,130	$	16,880	$	—	$	69,010
Time charter equivalent revenues		45,653		16,834		—		62,487
Depreciation and amortization		14,795		3,994		29		18,818
(Gain)/loss on disposal of vessels and other property		(1)		1,549		—		1,548
Adjusted (loss)/income from vessel operations		(851)		781		(40)		(110)
Equity in income of affiliated companies		4,603		—		3,412		8,015
Investments in and advances to affiliated companies at June 30, 2019		139,202		10,554		116,203		265,959
Adjusted total assets at June 30, 2019		1,278,859		315,086		116,203		1,710,148

	Crude		Product
(Dollars in thousands)	Tankers		Carriers		Other		Totals
Six months ended June 30, 2020:
Shipping revenues	$	204,084	$	60,978	$	—	$	265,062
Time charter equivalent revenues		194,744		60,276		—		255,020
Depreciation and amortization		28,977		8,123		47		37,147
Loss on disposal of vessels and other property, including impairments		1,330		—		—		1,330
Adjusted income/(loss) from vessel operations		106,824		30,087		(47)		136,864
Equity in income of affiliated companies		10,316		—		—		10,316
Expenditures for vessels and vessel improvements		22,451		18,498		—		40,949
Payments for drydockings		12,121		392		—		12,513
Six months ended June 30, 2019:
Shipping revenues	$	132,515	$	38,369	$	—	$	170,884
Time charter equivalent revenues		118,239		38,277		—		156,516
Depreciation and amortization		29,272		8,412		63		37,747
Loss on disposal of vessels and other property		16		1,484		—		1,500
Adjusted income/(loss) from vessel operations		22,511		4,839		(83)		27,267
Equity in income of affiliated companies		9,373		—		6,712		16,085
Expenditures for vessels and vessel improvements		5,339		17		—		5,356
Payments for drydockings		9,612		1,266		—		10,878

Reconciliations of time charter equivalent (“TCE”) revenues of the segments to shipping revenues as reported in the condensed statements of operations follow:

	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in thousands)		2020		2019		2020		2019
Time charter equivalent revenues	$	135,289	$	62,487	$	255,020	$	156,516
Add: Voyage expenses		4,436		6,523		10,042		14,368
Shipping revenues	$	139,725	$	69,010	$	265,062	$	170,884

Consistent with general practice in the shipping industry, the Company uses time charter equivalent revenues, which represents shipping revenues less voyage expenses, as a measure to compare revenue generated from a voyage charter to revenue generated from a time charter. Time charter equivalent revenues, a non-GAAP measure, provides additional meaningful information in conjunction with shipping revenues, the most directly comparable GAAP measure, because it assists Company management in making decisions regarding the deployment and use of its vessels and in evaluating their financial performance.

Reconciliations of adjusted income/(loss) from vessel operations of the segments to income/(loss) before income taxes, as reported in the condensed consolidated statements of operations follow:

	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in thousands)		2020		2019		2020		2019
Total adjusted income/(loss) from vessel operations of all segments	$	78,591	$	(110)	$	136,864	$	27,267
General and administrative expenses		(6,694)		(6,297)		(14,128)		(13,070)
Provision for credit losses, net		129		21		67		(1,277)
Third-party debt modification fees		—		—		(232)		(30)
Loss on disposal of vessels and other property, including impairments		(4,134)		(1,548)		(1,330)		(1,500)
Consolidated income/(loss) from vessel operations		67,892		(7,934)		121,241		11,390
Equity in income of affiliated companies		5,205		8,015		10,316		16,085
Other income/(expense)		143		839		(13,289)		1,875
Interest expense		(8,881)		(17,443)		(20,890)		(34,976)
Income/(loss) before income taxes	$	64,359	$	(16,523)	$	97,378	$	(5,626)

Reconciliations of total assets of the segments to amounts included in the condensed consolidated balance sheets follow:

(Dollars in thousands)	June 30, 2020		June 30, 2019
Total assets of all segments	$	1,609,765	$	1,710,148
Corporate unrestricted cash and cash equivalents		128,063		91,662
Restricted cash		16,398		58,630
Other unallocated amounts		4,730		4,769
Consolidated total assets	$	1,758,956	$	1,865,209